increase to a higher degree if you’re willing to work extra hard. This is an important point for many homeowners. It means that once you’ve made the correct decisions, you’re no longer a “good” homeowner.
This argument may be one that you are most uncomfortable with but it could also be true. A firm that expects to increase its growth rate (by doing things like opening new stores) is a good candidate for a lower cost of capital, and that means there is less risk to take. So if the firm has a low expected growth rate then it is more valuable to invest in the firm because the expected growth rate is lower.
If the firm’s expected growth rate is lower than expected growth rate, then it is better to invest in a firm that will grow its expected growth rate. But if the firm has a high expected growth rate then that means that you have to invest in the firm because that firm will grow its expected growth rate.
You can increase a firm’s growth rate by increasing the firm’s assets, but you can’t increase a firm’s growth rate by increasing its assets all at once. So if you have a big enough asset base, but don’t have enough real estate, then you can’t double your value in just one year. You can increase your assets in smaller increments. But if you have a high asset base, you get hurt by a big increase in the asset base.
I have a lot of time for this, but for now I’m just gonna take the time. I’m really getting on with it.
Again, in order to increase its expected growth rate, the firm needs to find more wealth. But this wealth requires capital to be raised, so the firm does not need to borrow all of its capital at once. Therefore, the firm can increase its expected growth rate by increasing its assets, but it also needs to increase its required rate of return (if the firm wants to borrow for growth).
This is a “perfect example” of why the firm needs to be growing. If it’s growing slowly enough, it’s not necessary for it to borrow. But if it’s growing rapidly, it needs to expand or it’s going to burn out.
The firm needs to grow, but it also needs to increase its expected growth rate.
In a more complicated way, the expected growth rate is the rate at which a firm’s assets grow as a proportion of its total assets. If you’re having a hard time imagining how a firm’s assets can grow as a proportion of its total assets, consider this: If a firm is growing at a constant rate of 10% per year, it will need to grow as fast or faster than that in order to grow its assets to the same 10% rate of return.
For the firm to grow at the same rate as its assets, it needs to increase its expected growth rate. For any growth to happen, the firm will need to increase its assets.